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When we read the stories about Enron, HealthSouth, and other accounting scandals, what is usually mentioned is the malicious intent of the executives to perpetrate a fraud. This is because “bad people do bad things,” right? Although the stories are instructive of how things can go wrong in an organization and how it can affect those involved, it is easy to forget about how we are all susceptible to the same temptations.

The fundamental attribution error is the human tendency to attribute the cause of these wrongdoings to the character of the individual who committed them. It’s called an error because, overwhelmingly, human behavior is determined more by environment than inherent personality traits. This error of perception works both ways, too: when something goes right, we tend to think that it was due to our virtues and/or skills rather than external factors (sheer luck, a good supporting staff who helped along the way, or a stock-market generally on an uptick). This, combined with the fact that people tend to rate their ethical inclinations higher than they actually are, is a troublesome sign for working professionals in just about every field. A fraud can begin with an innocent mistake, and continue because the perpetrator needs to cover it up. Of course, this is because they do not believe themselves to be a bad person.

However, being aware of the problem is an important step toward preventing future unethical behavior. That accountants spend a great deal of time thinking about internal control perhaps serves as a tribute to this way of thinking. We restrict access and separate duties of employees in a manner that reflects the notion that environmental factors are strong determinants of behavior. Surely these companies do not go around hiring bad people all the time so that they feel the need to exercise constant vigilance. These employees go along with it without feeling as though they are distrusted because the company thinks they are bad people and thus likely to steal from them. It is an unfortunate fact of life, but you can put an otherwise good person in a position where they can commit fraud without oversight or control, and you will run the risk of a fraud occurring.

A couple of months ago, we all received an invitation to compete in BASF’s Team Chemistry challenge. A fellow MPA student decided to form a group, and so I joined. It seemed like a fun project – come up with ideas to lessen the environmental impact of football gameday. I love football gameday and I have an interest in environmental sustainability, so it was like a match made in heaven. Of course, the incentive of winning a bunch of money didn’t hurt.

So, we set to work coming up with ideas on how to approach the problem. We easily came up with a host of small solutions that would have some impact, but quickly got bogged down in the details. After spending some more time pondering our work, we decided to focus on a group of related solutions and hone in on them. As Joel said in his most recent article about accountants being risk-averse, we learned from our initial mistakes, found the proper balance, and ended up with some pretty cool ideas.

We were invited to a couple of events by BASF and the Athletic Department to learn more about the initiative and the goals of the competition. One event was a sustainability panel sponsored by UT Engineers for a Sustainable World. The panel was entirely made up of engineers and the audience was entirely engineers … except two of us MPA students. It was very intimidating hearing about them discussing various polymers of which we had no clue of their existence much less their properties. Apparently these students have a big advantage over us with their knowledge of chemicals, considering BASF is essentially a chemical company. The next event was a stadium tour, during which our guides told us about their issues with waste management. Their focus seemed to be only on waste management problems, while our solutions did little to address that.

But, we pressed on, confident in the power of our ideas despite not having the technical knowledge that is certainly common among our competition. What we do have is a business ingenuity that enabled us to come up with feasible solutions that are easily implemented and have a measurable impact. We used the skills we have learned in economics, finance, and accounting to estimate the results of our proposals. We also used our branding and presentation skills to develop a persuasive format through which to deliver our proposal.

We find out Friday if we are invited to the finalist round, where we will present and defend our ideas in a “shark tank” environment. We’ve had fun putting it all together, and we’re proud of our accomplishments, but it would be great to get to write a “Part II” to this article about our preparation for the finalist round!

I spent this past weekend outside; eating dirt on the soccer field, (that’s fútbol to my Hispanic friends and football to my European buddies), flinging Frisbees around campus, and exploring Austin’s Mount Bonnell. The past couple of weeks have been a little stressful with school, work, and trying to get a hold of my personal life. All I needed was a date with Mother Nature to let it all go.

2013 Business World Cup Competition

The Business World Cup brings together the McCombs Affiliated Student Organizations (MASOs) to compete in a 5 on 5 soccer tournament. Teams have the chance to win McCombs glory, fame, and the alleged World Cup trophy. I was lucky enough to be allowed to compete with one of the Undergraduate Business Council teams. Unfortunately, we lost three out of three games, one of which was against the other UBC team. The scores were 3-0, 8-0, and 8-2 (I somehow was able to score one of the two points in the last game). There are those that play gracefully throughout the entire game, where they pace themselves and make sure they don’t push their limits too much at one time. I on the other hand, was weaving within minutes of starting and gradually began to play more and more aggressive as the panic began to set in.

I find it interesting that I have to pace myself when playing sports or when using by brain for academics and general schoolwork. Over time I’ve learned that if I don’t maintain a steady pace and take a deep breath every once in a while, I can’t perform at my best.

2013 Texas Blazers Frisbee Fling

Frisbee Fling is an 18-hole disc golf tournament that’s been held on UT’s campus for the past 12 years. All proceeds from the tournament benefit the Texas Blazers Endowed Scholarship for Eastside Memorial High School in East Austin. Definitely a great use of an hour and a half! I got to work on my Frisbee aim, eat a bunch of those Longhorn Bars, realize said bars were loaded in calories, smack someone in a chicken costume with a Frisbee and receive a Gildan 100% cotton t-shirt. After playing in the soccer tournament, I was definitely not at my athletic peak, but I was still able to keep up with the rest of my team without having to keel over.

Trip to Mount Bonnell

Almost immediately after the Frisbee fling, I went to explore Mount Bonnell with a few friends. For those of you who didn’t know, Mount Bonnell isn’t actually a mountain. Though it’s described as being the highest point in Austin, it’s lower than the Jollyville Plateau (according to Wikipedia). While it was more than a little steep, it really wasn’t too bad a climb. We were able to get a great view of downtown Austin and of the tower. I really wanted to see the peacocks that I had heard so much about but I guess there weren’t feeling too friendly that day. I did get a great life-chat with my friends though, resulting in the perfect end to my day.

Though I’ve had more productive weekends for school, I really think this mini-vacation was good for the soul and for me to recuperate from academics. I was able to get some quality thinking in about what I wanted and what was important to me. Despite getting a little redder than I would have liked, there were a lot of qualitative benefits to the weekend. Truly some food for thought.

I am back with one last installment about my internship experiences this semester. McCombs provides its students with a well-rounded business education and as I reflect on my internship, I realize that I used far more than just what I learned in my accounting classes. I thought I would share with you all how I used the McCombs core curriculum to succeed at my audit internship.

Finance: As as auditor, you will be exposed to a variety of financial instruments for which you need to audit and a background in finance is very helpful. I couldn’t have audited equity if I didn’t first understand present value!

Operations management: Throughout the course of the audit, you are exposed to the entirety of the business. As you audit certain areas such as inventory, you will identify fluxes (variances) that will need explanations. With my knowledge of operations management, I understood the nature of a supply chain (obtaining supplies, manufacturing, distributing, etc.) and thus I was able to dive deep into the numbers and understand what exactly was happening behind the scenes.

MIS: The MIS department will tell you this, and it’s definitely true- MIS is EVERYWHERE! Whether its the implementation of a new accounting system or database, or RFID tagging on your client’s inventory, you are definitely going to be exposed to a variety of information systems as an auditor.

Business communications: My BA324 experience is certainly a cliche one- I was a terrible public speaker (or as my professor so gracefully described it, an “inexperienced public speaker”) and the presentations and exercises in BA324 were crucial to my success in this realm of the business world. As an auditor, you will need to be able to speak professionally with the client.

Management: As you move up in the public accounting world, or even if you leave and work in industry, eventually you are going to be in charge of some of your colleagues. And even before that, you are going to be the one being managed. This being said, the concepts that we are taught in management are always going to surround us in the business world.

Marketing: One thing that stuck with me from marketing classes, and something that I try to use in my career, is that you have to know how to market yourself. This trait did not apply so explicitly to my actual internship, but moreso the recruiting process that led up to it. I had to know how to showcase my strengths as I recruited so that my potential employers knew that I would be an asset to their firm.

I just think that McCombs is great and I hope you all agree! Remember this week that you can donate for BBA Legacy (even though we are MPA students- some of us are BBA too!)

I am 3 weeks into my auditing internship here at a Ernst & Young in Boston, MA. It has been crazy, a bit overwhelming, and already it feels like I have been working forever. I am learning so much everyday and I want to share what I have learned with those of you who are currently in MPA and thinking of participating in this awesome program.

My first internship lesson actually had nothing to do with accounting at all.

It was my first day at the client and my start time was 8:30 AM. The commute was about an hour, so naturally I left at 6 AM. (This might seem crazy but those of you who know me know that it is actually very predictable.) All was going well and I was on track to be not-so-fashionably early for my first day. All of a sudden, the “low tire pressure” alert began sounding in the car. As I pulled off at the next exit, I heard my tire completely blowout. I frantically called the rental car company, and then the towing company, and then a team member on my client to explain what was going on.

As all of this was happening, there were so many thoughts going through my head. The first, of course, being that I was going to late my first day of work because of a flat tire. That’s almost as cliche as forgetting your homework and saying your dog ate it.

In the end, I was late, but I learned a valuable lesson. As cheesy as it is, I learned that these things happen and no one is going to hold it against you. As adolescents we often resort to one of two reactions when these kinds of things happen. We either blame everyone except ourselves or we completely internalize the situation and worry about what everyone will think of us. As new interns we really hope to impress, not only because we want to secure that 5-star performance review that Jamal alluded to in his last post, but also because we are representing the University of Texas as we intern.

As you begin your internship, nerves and anxiety are okay, but my as my dad always tells me, the difference between excitement and nervousness is confidence. It’s important to remember that no one is expecting you to be perfect, they only expect you to be the best you can be. Don’t be nervous because McCombs more than prepares us for the actual accounting part of the internship. If something happens on your first day, just remember that things happen, and don’t sweat the small stuff.

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What’s life as a Texas MPA all about? Current students—Ruby, Russ and Julie—give you the inside scoop in their blogs. Read up on their perspectives on classes, the job search, living in Austin and more.